One should build a team of Broker, Consultant, CPA or Accountant and an Attorney and keep them informed. There are many dentists who want to handle the sale on their own to save money. But if one need to get their teeth fixed, they will visit a dentist and not a plumber. It sounds funny, but there are experts in the industry for a reason and they are worth every penny one spends on them. So, one should get their advice and more importantly keep them in the loop on all of your decisions and discussions.
One should obtain a Professional Practice Valuation and Understand it completely. After hiring a team to work with, goal and a transition plan, it’s time to find out what your practice is worth. The valuation you get should be completed by a CPA/broker/Accountant that understands dentistry and understand the current market place for practice sales. The most usual and industry accepted valuation is based on “free cash flow” also known as a Capitalized Rate model or EBITDA.
When a dentist is selling his/her practice, there are bound to be speculations in the market. But sometimes it is crucial to keep the news of selling the dental practice under wraps to avoid curious employees and patients. This is why it is important for all the parties whether they are sellers or potential buyers to sign a nondisclosure agreement. This will help protect the privacy of the seller and it will ensure a smooth transition for everyone.
The best method to sell a dental practice is to always work with an expert transition broker who can provide high quality representations and can solve any query or problem regarding the sale. These experts are extremely experienced when it comes to correctly organise a sale. They know how to structure and customise everything according to each seller. They usually call upon their past experiences to customize the transition process to best suit your needs.